New Delhi: In what could come as a major disappointment for the common man already saddled by the impact of the COVID-19 Pandemic, Finance Minister Nirmala Sitharaman presenting the Union Budget 2021 announced farm cess on petrol and diesel that would lead to further rise in fuel prices. 


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FM Sitharaman proposed farm cess of Rs 2.5 per litre on petrol and that of Rs 4 per litre on diesel in the Union Budget 2021. Though firm global crude and product price is the reason for the increase in retail price of petrol and diesel, Oil Marketing Companies have gone in for both a pause in price of auto fuels as well increase in its retail prices on consecutive days, rather than slashing prices.


The petrol and diesel prices have increased 10 times in January with both auto fuels increasing by Rs 2.59 and Rs 2.61 per litre respectively during the month.


The last few increases in pump prices in petrol and diesel has taken its price to record levels across the country in all major metro cities and other towns. The last time the retail price of auto fuels were closer to current levels was on October 4, 2018 when crude prices had shot up to $80 a barrel.


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Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates.